Core Insights - eBay reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.30 per share, and showing an increase from $1.18 per share a year ago, resulting in an earnings surprise of +5.38% [1] - The company achieved revenues of $2.73 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.79% and up from $2.57 billion year-over-year [2] - eBay shares have increased approximately 26.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $2.67 billion, while for the current fiscal year, the estimate is $5.36 on revenues of $10.65 billion [7] - The trend of estimate revisions for eBay was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Commerce industry, to which eBay belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew by 4% to $19.5 billion, with revenue increasing by over 4% to $2.73 billion [9][35] - Non-GAAP operating income rose by 8% to $775 million, and non-GAAP earnings per share increased by 16% year over year to $1.37 [9][35] - The take rate was 14%, showing a modest year-over-year increase, with advertising, shipping, and financial services contributing positively [42][44] Business Line Data and Key Metrics Changes - Focus categories experienced GMV growth of over 10%, significantly outpacing core categories [10][36] - Collectibles, particularly trading cards, were the largest contributor to growth, with triple-digit GMV growth for Pokémon cards [10][11] - Motors, Parts, and Accessories contributed nearly one point of year-over-year GMV growth, driven by strength across major markets [13] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to 7%, exceeding expectations due to healthy consumer demand [38][39] - International GMV grew nearly 2% on an FX neutral basis, with foreign exchange providing a tailwind [39][41] - The U.K. and Germany investments helped navigate lower growth environments, with cross-border volume growth remaining stable [40][41] Company Strategy and Development Direction - The company is focused on enhancing the customer experience through generative AI, improving listing quality, and personalizing customer engagement [17][18][32] - eBay Live is a significant area of investment, aimed at transforming how enthusiasts discover and compete for high-demand inventory [22][23] - The company is expanding its Klarna partnership in the U.S. to attract younger demographics and improve conversion rates on high-ticket items [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the business performed well in July, reflecting sustained healthy consumer trends in the U.S. [46] - The outlook for Q3 anticipates GMV between $19.2 billion and $19.6 billion, with revenue growth expected to be modestly higher than GMV [47][50] - The company remains cautious about potential disruptions from tariffs and trade policy changes [47][50] Other Important Information - eBay was recognized as one of Time's World's Most Sustainable Companies and Newsweek's World's Greenest Companies 2025 [31] - The company returned approximately $760 million to shareholders through repurchases and cash dividends [35][45] Q&A Session Summary Question: Insights on marketing and AI's impact on traffic generation - Management highlighted a full funnel marketing approach and noted efficiencies in lower funnel marketing spend due to competitive dynamics [56][57] Question: Future category growth expectations - Management indicated that existing focus categories will continue to drive growth, with strong performance across collectibles and P&A [62][64] Question: U.S. market strength and international comparison - Management noted broad-based strength in the U.S. market, while Europe remains challenging, but investments are offsetting some macro trends [71][72] Question: Trading cards market sustainability - Management acknowledged that trading card growth is not linear but remains optimistic about long-term growth potential [88] Question: Margin recovery and operating leverage - Management emphasized that top-line growth leads to healthy margins, focusing on balancing growth and profitability [90][91]

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew by 4% to $19.5 billion, with revenue increasing by over 4% to $2.73 billion [7][30] - Non-GAAP operating income rose by 8% to $775 million, and non-GAAP earnings per share increased by 16% year over year to $1.37 [7][30] - The take rate was 14%, showing a modest year-over-year increase, with advertising, shipping, and financial services contributing positively [38] Business Line Data and Key Metrics Changes - Focus categories experienced GMV growth of over 10%, significantly outpacing core categories [8][31] - Collectibles, particularly trading cards, were the largest contributors to growth, with triple-digit GMV growth for Pokémon cards [8][9] - Motors, Parts, and Accessories (P&A) contributed nearly one point of year-over-year GMV growth, driven by strength across major markets [11] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to 7%, driven by healthy consumer demand and strong performance in trading cards [33] - International GMV grew nearly 2% on an FX neutral basis, with foreign exchange providing a tailwind [34] - The U.K. and Germany investments helped navigate lower growth environments, with cross-border volume growth remaining stable [35] Company Strategy and Development Direction - The company is focused on enhancing the consumer-to-consumer (C2C) experience in the U.K. and expanding capabilities in live commerce [19][20] - Generative AI is being leveraged to optimize listings and personalize customer engagement, driving higher quality visits [14][15] - The company aims to maintain a disciplined balance between top and bottom line growth while investing in strategic initiatives for long-term value [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of trading card categories despite potential fluctuations in growth [9][86] - The company anticipates continued healthy consumer trends in the U.S. and plans to reinvest a portion of top-line upside into strategic initiatives [41][44] - The outlook for the remainder of the year considers potential disruptions from tariffs and the elimination of de minimis exemptions [42][46] Other Important Information - The company returned approximately $760 million to shareholders through repurchases and cash dividends [30] - eBay was recognized as one of Time's World's Most Sustainable Companies and Newsweek's World's Greenest Companies 2025 [27] - The company plans to target share repurchases of approximately $2.5 billion for the full year [47] Q&A Session Summary Question: Insights on marketing and AI positioning - Management highlighted a full funnel marketing approach and noted efficiencies in lower funnel marketing spend due to competitive dynamics [54][56] Question: Future category growth expectations - Management indicated that existing focus categories will continue to drive growth, with ongoing investments in both new and established categories [61][62] Question: U.S. market strength and strategic investments - Management noted favorable macro conditions in the U.S. and emphasized the importance of strategic investments in C2C initiatives and AI [68][70] Question: Sustainability of GMV growth and active buyer base - Management confirmed that active buyers are crucial for maintaining GMV growth, with a focus on converting active buyers to enthusiasts [90][92] Question: Trading cards market durability and margin outlook - Management acknowledged that trading card growth is not linear but remains optimistic about long-term potential, while also discussing the relationship between top-line growth and margins [85][87]

Core Viewpoint - eBay's shares surged 10% in after-hours trading following stronger-than-expected second-quarter results and an optimistic forecast for the upcoming quarter [1] Financial Performance - Gross Merchandise Volume (GMV) increased by 6% year-over-year to $19.5 billion, surpassing analysts' expectations of $18.9 billion [2] - For the third quarter, eBay projected revenue between $2.69 billion and $2.74 billion, exceeding Wall Street's forecast of $2.66 billion [2] - Adjusted earnings per share are expected to be between $1.29 and $1.34, compared to analysts' anticipation of $1.31 per share [2] Guidance and Market Conditions - eBay's third-quarter GMV guidance is set between $19.2 billion and $19.6 billion, higher than the consensus estimate of $18.8 billion [3] - The GMV guidance considers potential disruptions from new tariffs and the elimination of de minimis exemptions [3] Executive Insights - eBay's CEO expressed confidence in the company's ability to navigate uncertainties arising from tariff policies and changes to de minimis regulations [4] - The company has proactively moved about 75% of its inventory from China to the U.S. prior to the changes in de minimis policies [5] Competitive Landscape - eBay faces significant competition from major online retailers such as Amazon, Walmart, and Etsy, as well as emerging platforms like Temu and Shein [6] - To retain customers, eBay is focusing on "enthusiast" shoppers and specific categories like collectible sneakers, trading cards, used luxury goods, and auto parts [6] Leadership and Technology - eBay appointed Peggy Alford as the new CFO, succeeding Steve Priest, and announced a leadership restructuring to enhance technology collaboration [7] - The company has integrated more artificial intelligence tools to improve product discovery on its platform, including a newly launched shopping agent [7] Performance Metrics - eBay reported adjusted earnings per share of $1.37, exceeding the expected $1.30, and revenue of $2.73 billion, surpassing the anticipated $2.64 billion [8] - As of the latest close, eBay shares have risen 25% year-to-date, while the Nasdaq has increased by approximately 9% [8]

Q2'25 Financial Performance - Gross Merchandise Volume (GMV) reached $19.5 billion, exceeding guidance[7,33] - Revenue amounted to $2.7 billion, also surpassing expectations[7,33] - Non-GAAP Operating Margin stood at 28.4%[7,33] - Diluted Non-GAAP EPS was $1.37, a 16% increase[7,33] Growth Drivers - Collectibles were the largest contributor to GMV growth, with Trading Cards accelerating for the 10th straight quarter[9] - Motors, Parts & Accessories contributed approximately 1 percentage point to total year-over-year GMV growth[11] - Seller Capital program disbursed over $100 million to more than 10,000 sellers globally in 2025[26] Advertising Performance - Advertising revenue reached $482 million, showing 16% year-over-year FX-Neutral growth[42] - First-party (1P) ads revenue grew 12% year-over-year[42] - Third-party (3P) ads revenue grew 17% year-over-year[42] Capital Allocation and Financial Position - Approximately $2 billion repurchase authorization remaining as of June 30, 2025[58] - The company is targeting mid-term leverage of approximately 1.5x net debt and gross debt below 3.0x EBITDA[63] - The company is targeting mid-term minimum cash & investment balance of approximately $3.5 billion[63]

Financial Performance - eBay reported second-quarter revenue of $2.73 billion, reflecting a 6% year-over-year increase and surpassing the Street consensus estimate of $2.64 billion [1][2] - The company achieved earnings per share of $1.37, exceeding the Street consensus estimate of $1.30 [1][2] Gross Merchandise Volume - Gross merchandise volume for the quarter was $19.5 billion, also up 6% year-over-year [2] Future Guidance - eBay is guiding for third-quarter revenue to be between $2.69 billion and $2.74 billion, compared to a Street consensus estimate of $2.65 billion [2] - The expected range for third-quarter adjusted earnings per share is $1.29 to $1.34, aligning closely with the Street estimate of $1.30 [3] Market Reaction - eBay's stock increased by 10.43% to $85.56 in after-hours trading, with a 52-week trading range of $53.74 to $83.53 [3]

EBay projected sales that topped analysts’ estimates, suggesting the company expects continued consumer resilience to shifting US tariff proposals https://t.co/O6UjG8BaMA ...

Exhibit 99.1 eBay Inc. Reports Second Quarter 2025 Results San Jose, California, July 30, 2025 – eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its second quarter ended June 30, 2025. "eBay delivered another strong quarter, with results exceeding expectations across the board," said Jamie Iannone, Chief Executive Officer at eBay. "Our momentum reflects the strength of our strategic execution and the resil ...

Core Viewpoint - eBay Inc. reported strong financial results for Q2 2025, exceeding expectations and demonstrating strategic execution and marketplace resilience, with a focus on long-term growth and shareholder value [2][4]. Financial Highlights - Net revenues for Q2 2025 were $2.73 billion, a 6% increase from $2.57 billion in Q2 2024 [4][5]. - GAAP net income from continuing operations was $369 million, or $0.79 per diluted share, compared to $226 million, or $0.45 per diluted share in the prior year [4][5]. - Non-GAAP net income from continuing operations was $643 million, or $1.37 per diluted share, up from $602 million, or $1.18 per diluted share in Q2 2024 [4][5]. - Gross Merchandise Volume (GMV) reached $19.5 billion, reflecting a 6% increase year-over-year [5][27]. Operational Highlights - eBay launched eBay Live in the U.K. and eBay Live on Tour in the U.S., enhancing livestream shopping experiences [6]. - The company introduced an AI shopping agent for personalized product recommendations, currently available to a limited number of U.S. customers [6]. - eBay's Authenticity Guarantee program inspected over one million items in a quarter for the first time, indicating growth in luxury and streetwear brands [6]. - eBay's advertising revenue was $482 million in Q2, representing 2.5% of GMV, with first-party advertising products generating $455 million, a 19% increase year-over-year [6]. Business Outlook - For Q3 2025, eBay expects revenue between $2.69 billion and $2.74 billion, with FX-Neutral year-over-year growth projected at 3% to 5% [10][30]. - The company anticipates GMV in the range of $19.2 billion to $19.6 billion, with diluted GAAP EPS expected between $0.97 and $1.02 [10][30]. Capital Returns - eBay returned $759 million to shareholders in Q2 2025, including $625 million in share repurchases and $134 million in cash dividends [5][17]. - The Board declared a cash dividend of $0.29 per share for Q3 2025, payable on September 12, 2025 [11]. Balance Sheet - As of June 30, 2025, eBay's cash and cash equivalents totaled $2.07 billion, with total assets amounting to $17.96 billion [21][22]. - Total liabilities were reported at $13.21 billion, resulting in stockholders' equity of $4.75 billion [21][22]. Additional Information - eBay's active buyers remained stable at 134 million, reflecting a 1% increase year-over-year [27]. - The company was recognized in TIME's World's Most Sustainable Companies 2025 and Newsweek's America's Greenest Companies 2025 lists, highlighting its commitment to sustainability [6].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score identifies stocks benefiting from price trends, utilizing metrics like weekly price changes and monthly earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: eBay - eBay is currently rated 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having seen a 6.1% increase in shares over the past four weeks [11] - For fiscal 2025, eBay's earnings estimate has been revised upwards by four analysts, with the Zacks Consensus Estimate now at $5.36 per share, reflecting an average earnings surprise of +3.1% [12]